Absorptive capacity and internationalization : a case study of Finnish companies
1University of Oulu, Oulu Business School, Department of Management and International Business, Management
|Online Access:||PDF Full Text (PDF, 1.2 MB)|
|Persistent link:|| http://urn.fi/URN:NBN:fi:oulu-201705101740
|Publish Date:|| 2017-05-10
|Thesis type:||Master's thesis
The purpose of this study is to empirically address the relationship between absorptive capacity and internationalization. Previous researchers have identified issues relating to firm’s lack of knowledge when handling international business. Absorptive capacity is the ability of firm to acquire, assimilate, transform and exploit external knowledge needed to solve such problems in firm’s internationalization.
This research suggests that if a firm is able to measure its absorptive capacity, the result may improve the firm’s international business activities and performance. Reasons for absorptive capacity measurement suggested by this research is to enable firm to increase their level of internationalization by drawing from their international experiences, and to also have a better understanding of their business environment to gain new opportunities, achieve sustainable competitive advantage and to increase their survival rate in the fast growing global market.
This study is in the form of a quantitative research focusing on Finnish companies conducting international operations. A structured questionnaire was used as the data collection process by using the key informant technique with a total of 98 respondent firms in Finland as at 2013. SPSS software was used to run the statistical analysis of the study to determine the correlations between the studied variables. Consistent with prior research, the results of the study support the notion that there is a significant relationship between absorptive capacity and firm internationalization.
The study provides several implications to companies and their managers concerning firm international operations. The given results of the study illustrate that there is a need for managerial action that builds and supports organizational absorptive capacity to enable increased firm internationalization.
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